Frequently Asked Questions

A bank statement loan allows you to qualify for a mortgage using only your bank statements. Bank statements are used instead of traditional methods of income verification. Usually, 12 or 24 months of bank statements are needed, although some people may be able to qualify with just one, two, or three months. It’s also worth mentioning that criteria like your credit score will be considered when determining your loan conditions.

Yes, it is possible to obtain a mortgage without providing tax returns through LBC Mortgage, depending on the loan program and borrower profile. Certain non-traditional mortgage products are structured specifically to accommodate borrowers whose tax filings do not reflect their true earning capacity due to business write-offs, depreciation, or variable income. Instead of relying on tax returns, these programs use alternative methods to assess repayment ability.

One common option is a DSCR (Debt Service Coverage Ratio) loan, which is primarily used for rental properties. DSCR loans qualify borrowers based on the property’s rental income relative to its monthly housing expense rather than the borrower’s personal income. When the rental income meets or exceeds the required DSCR threshold, personal tax returns, W-2s, and pay stubs are typically not required. This structure is especially useful for real estate investors and self-employed individuals who own income-producing properties.

Another alternative is a bank statement mortgage, which evaluates income using 12 to 24 months of personal or business bank statements. In this case, income is calculated from deposit history instead of reported taxable income. These programs still require verification of assets, credit history, and reserves, but they remove the need to submit full tax returns. By offering multiple non-tax-return qualification paths, LBC Mortgage enables borrowers to pursue financing that better reflects real-world cash flow while maintaining responsible underwriting standards.

Yes, self-employed borrowers can qualify for a mortgage through LBC Mortgage, even if their income structure makes approval difficult with conventional lenders. Unlike banks that rely almost exclusively on W-2 income and tax-return net figures, LBC Mortgage evaluates self-employed applicants using a broader set of qualification methods tailored to business owners and independent professionals. The process begins with a review of how income is earned, how long the business has been operating, and what documentation best represents true cash flow.

Depending on the loan program, income may be verified using two years of tax returns, 12 or 24 months of personal or business bank statements, 1099 forms, or a combination of documentation supported by a CPA letter. For borrowers whose tax returns show reduced income due to write-offs, bank statement programs can be especially effective because they assess average monthly deposits rather than taxable net income. LBC Mortgage also offers investor-focused programs, such as DSCR loans, that qualify based on property cash flow instead of personal income altogether.

In addition to income review, LBC Mortgage evaluates assets, credit history, and required reserves to ensure overall loan stability. This holistic approach allows self-employed borrowers to access mortgage options that align with real-world earnings rather than rigid formulas. By matching each borrower with the appropriate documentation pathway and lender guidelines, LBC Mortgage helps self-employed individuals move forward with realistic approvals and clearer expectations throughout the loan process.

Refinancing a mortgage without significant equity may still be possible depending on the type of loan you currently have and your payment history. Through LBC Mortgage, borrowers can explore refinance programs that are designed to reduce friction when property values have not increased or when loan balances remain close to the home’s market value. These programs are typically intended to improve loan terms rather than extract equity.

For homeowners with FHA loans, the FHA Streamline Refinance program may allow refinancing without a new appraisal, meaning the amount of available equity is not the primary qualification factor. Instead, lenders focus on on-time payment history, net tangible benefit, and existing FHA loan status. Similarly, eligible VA borrowers may qualify for an Interest Rate Reduction Refinance Loan (IRRRL), which allows refinancing with minimal documentation and no appraisal requirement in many cases. These options are generally limited to borrowers refinancing into the same government-backed loan type.

Outside of streamline programs, most conventional and non-QM refinances require some level of equity, as loan-to-value ratios play a central role in underwriting. However, even when equity is limited, restructuring loan terms—such as adjusting the interest rate, loan term, or payment structure—may still be achievable under specific guidelines. Reviewing the current loan type, payment performance, and refinancing objective helps determine whether a no-equity or low-equity refinance is feasible and whether it delivers a meaningful financial improvement rather than a temporary adjustment.

A DSCR loan is a type of business loan that is used to finance the purchase of large equipment or property. While a DSCR loan can be used for a variety of purposes, it cannot be used to finance the purchase of a primary house. This is because DSCR loans are secured by collateral, and a house cannot be used as collateral for a business loan. If you are looking to finance the purchase of a house, you will need to consider a traditional mortgage. However, if you are interested in financing the purchase of the investment property, a DSCR loan in Colorado may be the right option for you.

No, you cannot use your VA loan for investment properties. The loan must be used for the purchase of a primary residence only.

If you have any other questions about VA mortgage in California, feel free to reach out to our team of experts. We’re here to help guide you through the process and make sure you get the best possible deal on your loan.

Everyone who plans to buy a house by taking a mortgage should start with pre-approval. This stage helps plan all the further financial steps and gives a clear picture of how much you can afford. It doesn’t matter where you are in the process now, try to get pre-approved asap.
There are still options for lower credit score or damaged credit history. Contact our office to discuss available portfolio programs.
No, you don’t need a Green Card to qualify for a NON-US resident mortgage. However, it can help if you want to apply for long-term financing.
No, you do not need perfect credit to get a DSCR loan. However, your credit score will play a role in determining the interest rate you receive. Therefore, if you have any blemishes on your credit history, it’s always best to speak with a loan officer beforehand to see if you’re still eligible.
No, you do not need perfect credit to get a VA loan. However, your credit score will play a role in determining the interest rate you receive. If you have any blemishes on your credit history, it’s always best to speak with a loan officer beforehand to see if you’re still eligible.
No, you don’t need perfect credit to qualify for an FHA loan. You need to have a credit score of at least 500 to qualify. Even if you have had a bankruptcy or foreclosure in the past, you may still be eligible for an FHA loan.